Call your financial aid office, and ask to talk to your director and explain your situation. What you may have to do is take off this term. You can then use the full amount of your Staffords for the second semester and work this term making the money to pay for next year. You can explain to your parents that you are at the end of the line in terms of loans and you don't have the money to do this, so that you will have to withdraw fromschool to earn it. I think if you start right now, you will be able to earn enough so that you can go full time next term and then by continuting to work through the term, summer and full time next year, be able to go back and finish second semester. You will have to salt away everything you can doing it this way. It does happen quite a bit in families. If your family is now more than 90 days behind in payments, yes, they can get denied for the PLUS. They can appeal it or the other parent, can give it a go since only one parent applies, or a cosigner can be gotten. BUt if our family has financial issues, it's not necessarily a bad thing that they were denied an additional $26K in loans.